Maybe you should be loaning your money to them rather than borrowing from them.

What To Watch Out For

* Early repayment fees. Pay off your loan early and they sock you with another fee. * Late repayment fees. You may have to pay entire fee again if you miss payment date. * "Membership" fees. Some companies charge you to become their customer along with charging you as their customer. * Giving lenders access to directly debit your bank account. Just hand them your wallet, it's quicker. * Fine print (as in all contracts). Know what you are signing or don't sign it. * Bounced check or debit fees. Make sure you have money in your bank account or you get to pay your bank a fee as well. * "Collateral" requirements such as a car title. Miss your payment and you may be missing your car - permanently.

There Is A Better Way

The root problem here could be that you are getting strangled by your debt payments. Credit cards, store accounts, installment payments and such can eat up your income quickly. Ite may be time to visit a non-profit credit counseling service or create a debt reduction plan for yourself.

Or it could be that you are just spending more than you make. You may need to spend a few minutes each week and write down your expenses. Then categorize and total them to see where your money is going. Then record your income for same time period and make sure that you are not spending more than you make.

Sure, everyone gets behind occasionally. But you need enough room in your budget (this means spending less than what you make) to accommodate "budget busters" and surprise expenses that may come up. It may mean cutting back on cable, magazine subscriptions or eating out. But last time I checked, McDonalds did not charge a $15 "fee" for making your food.

And then there is that low "teaser rate". Yes that's what it is called in industry and it is appropriately descriptive. That rate is given out, they aren't lying about that. But it is only given to people who have 700 or above credit scores, minimal debt, and a high paying job.

The majority of people who are sent ad will not get lowest rate. But you won't know your rate until you apply for card. But by time they tell you what rate you will be at they have already signed you up and issued your card.

They count on fact that most people will just accept rate and go from there. Gotcha!

So how can you avoid these traps?

Rule #1, read ALL of fine print. If you are not clear on something ask someone else what they think it means. Ask an attorney friend, CPA (certified public accountant), financial planner, banker or other person in financial industry. Chances are they will have several questions about fine print, too.

Rule #2, don't apply for a card unless or until they tell you what your actual rate will be. This is hard because most of them are not set up to tell you. Generally you will need to know your credit scores and have a copy of your credit report handy.

Even then you are unlikely to find someone through their telephone maze that will or can actually answer your question. Try to find a card that gives you a confirmed rate before you apply. A conscientious company will first request a copy of your credit report from one of credit bureaus before quoting you a rate.

Look on http://www.bankrate.com for current rates offered by various credit card companies and banks. Often smaller banks and companies offer better deals and are not as strict or hard to deal with. Check with your local banks also. At least with a locally issued credit card "you know where they live".

Rule #3, always mail your payment at least 7 days before it is due. Or try paying through Internet. Many companies now offer that payment method. It can also save you time and stamps.

Rule #4, check your statement each month to be sure you are still at interest rate you signed up for. If your rate has been increased, look for a late payment fee, or some other reason for increase. Call company and ask them why they increased your rate.

If your rate was unjustly increased (they processed payment late or credited it to your account late, but it was not received late) then ask them to change your rate back to what it should be.

Even if you did make a late payment, most companies will reduce your rate after six months of on-time payments. But if you don't ask, they will keep you at higher rate as long as they can.

In credit card business it is definitely "caveat emptor" or buyer beware!